A brief summary of his remarks include:
China is experiencing a real GDP growth of 10.5% in 2010 after an 8.7% growth in 2009 with no end in site. Of the 40.9 million square feet of exhibition space sold in Asia in 2009, 55% of it was in China. China accounts for almost 1/3 of all Asian revenue in exhibitions so it cannot be ignored. While the volume is the highest in Asia, Hong Kong is able to sell space at more than 3 times higher than what a square meter will sell for at a China venue.
China has 68% of all the exhibit space in Asia. There has been a belief somewhat that “if they build it, shows will come” and will drive growth to the communities through additional hotels, restaurant, and tourist spending. But the reality is that the oversupply of space has driven the prices to the lowest in Asia. Shanghai has 46% of the exhibitions in China and more international shows; Beijing has 33% and more of the lifestyle shows; and Guanzhou has 21% of the shows which are machinery and industrial and tend to be smaller and more local.
The average selling price for a square meter of space in China is 135USD per m2 as opposed to $421USD per m2 in Hong Kong.
Trending is toward more international organizers producing shows and more M&A occuring with existing Chinese orgainizers. They are seeing increasing competitiveness and Cheung says that only the successfully branded shows will survive.